Here is our monthly update on major indexes for our international investors.

$SPX - sell signal in January 2008 ended the buy signal of May 2003.

Most other major indexes around the world follow this pattern.

$SPX is down 36% since our major sell signal was confirmed in January.

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$TSX - down 24% since our major sell signal.

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Australia is down 37% since our major sell signal...

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Brazil is down 53% since our major sell signal.

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India is down 39% since the major sell.

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France is down 44% since the major sell.

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Germany is down 30%.....

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London is down 25%.....

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Hong Kong is down 35% since the major sell.

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Tokyo is down 44% since the major sell...

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Shanghai is down 60% since the major sell.

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Philippines is down 41% since the major sell...

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Taiwan is down 39% since the major sell.

Summary

All global indexes we track remain on major sell signals this month.

Long term investors are in cash or hedged and will remain so until major buy signals.

By staying disciplined to our trading models, we managed to stay firmly in the black in 2008 while global indexes suffered heavy losses.

Unlike other analysts, we do not provide predictions or forecasts for the new year, but simply continue to stay disciplined to our trading models and manage risk.

Happy new year, and thank you for your continuous support.

End of update.